It definitely seems that in real estate this year.The year started out so promising with mortgage interest rates dipping below 6% and inventories of housing on a slow but steady increase.
OPPORTUNIY Knocks!!
Dated: January 31 2026
Views: 111
Are you really ready for a typical Minnesota winter? After several years of mild winters, this one is turning out to be much more typical. Lots of cold weather and snow! And although the housing market is going through its typical winter dip also, the forecast for housing looks much better for 2026 than in 2025. Interest rates have fallen just below 6%. The lowest fixed rate in 2 years and the real estate economists are predicting a further decline this year. Now, don’t get all excited and expect what we saw in the previous 4 years. The days of 3% to 3.5% was an artificial market created by the federal government to spur the economy after Covid according to Brian Buffini, well respected real estate trainer, and Larwence Yun, the Chief Economist for the National Association of Realtors. Both say we are very unlikely to see rates that low again in our lifetimes.
But what they do predict is rates at about 5.5% on 30 year fixed. Over the last 30 years fixed rates have averaged 7.7%. That difference is a major gain in affordability. The median home in the Twin Cities sold at $391,450 last year. That means the average buyer will save $8611 a year compared to the average buyer over the 30 year average rate. Folks, that is $717 EVERY month, if the predictions are correct. Some other good news: although we are in the winter doldrums right now, inventories of homes had started to pick up at the end of prime selling season and days on market are up about 10%. Why is that good news? Because a seller can actually buy his (her) new home at a very attractive rate, which will be an impetus for them to put their home on the market and buyers will have more to choose from. The other thing we started to see last year was a major reduction in multiple offers and a reduction in the percentage of list price a home was selling for. Also, the rate of appreciation is down from the 9% per year to 1%-2%, again pointing to more affordability.
Now, it is hard to imagine moving in a Minnesota winter. But a good agent really needs a few weeks to properly do the prep work to market a property. Also, closing dates are negotiable. We are looking at what could be a window of opportunity to make a great move. If you would like to see how this affects your situation, check out my website at MnHomesbyDave.com for more statistics and articles. Or give me a call. I would love to help. Thanks.
Dave and Ann Feerhusen
"Experience you can trust!" I am very fortunate, along with my partner and wife, Ann, to have spent my career of 41+ years helping people successfully market their homes in the Twin Cities. We have ha....
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© 2026 Realtor Association of Southern Minnesota. All rights reserved. The data relating to real estate for sale on this limited electronic display comes in part from the Broker Reciprocity (sm) Program of the Realtor Association of Southern Minnesota Multiple Listing Service. Real estate listings held by brokerage firms other then REMAX Advantage Plus - Orono are marked with the Broker Reciprocity(sm) logo or the Broker Reciprocity(sm) thumbnail logo (a little black house) and detailed information
